The new fund is intended to support Bavarian scaleups during particularly capital-intensive expansion phases as a co-investment partner to private investors in realizing large financing rounds. For the Scaleup Fund Bavaria to invest in a startup, the startup must demonstrate a successful, scalable business model. The business model should be based on an innovative, ideally protected technology with sustainable unique selling points and significant competitive advantages.
The financing contribution can range from ten to 25 million euros per technology company, depending on the situation. Bavaria Capital Managed by LfA Förderbank Bayern (a wholly owned subsidiary of LfA Förderbank Bayern), the Scaleup Fund Bayern never invests in competition, but exclusively in close cooperation and on equal terms with private investors. This is intended to enable financing rounds with a total volume of €20 to €50 million and more for Bavarian high-tech companies. Bayern Kapital's investment focus is on all high-tech sectors, including life sciences, software and IT, medical technology, mobility, materials and environmental technology.
Bavaria's Minister of Economic Affairs Hubert Aiwanger says:
"In order to gain international traction, Bavarian high-tech companies also need large-scale financing rounds for crucial growth. With the Scaleup Fund Bavaria, there is now an effective financing instrument for such projects. This gives Bayern Kapital the necessary capital strength to support our technology leaders in such financing rounds, even in the later-stage and growth sectors – and thus inspire even more private investors to invest in Bavaria's technology landscape. Overall, Bavaria has built a highly efficient ecosystem for high-tech financing and created an attractive competitive environment for companies and investors. With this foundation, we are securing qualified jobs and the prosperity of tomorrow."
“The fund always acts as a co-investment partner”
Otto Beierl, Chairman of the Board of LfA Förderbank Bayern, explains:
"Successful startups are essential for the future of Bavaria as a business location. In many cases, this requires external financing. This also applies to the expansion phase after initial round financing has been received, which is often crucial for a company's long-term success. The LfA is therefore pleased to provide the funds for the Scaleup Fund Bavaria. The fund always acts as a co-investment partner and ensures that both public and private investors provide funds for young companies. Through our commitment, we contribute both to strengthening the respective companies and to the performance of Bavaria as a technology hub."
Bayern Capital Managing Director George Ried says:
"We have been very successful in the early and growth phases for years. With the Scaleup Fund Bavaria, the Free State of Bavaria is now putting the final piece of the puzzle in place to provide targeted support to Bavaria's technology leaders from the start-up stage to the structured capital market: Bayern Kapital can now also act as a powerful investment partner in the large-scale expansion financing sector, mobilizing even more private capital for Bavaria's high-tech hotbed."
Markus Mrachacz is the team leader of the new fund, and Wolfgang Hanrieder serves as fund representative. He has previously held executive positions at the global private equity firm Carlyle Group, among others. Hanrieder has also been active for many years as a business angel and as a member of the supervisory and advisory boards of several well-known technology startups. Roman Huber, Co-Managing Director of Bayern Kapital, says:
"We are pleased that we have been able to strengthen Mr. Mrachacz's team with Dr. Hanrieder for this private equity-related business, thus gaining ad hoc, highly qualified access to large, international investor circles. This will help us successfully fulfill our mission for Bavaria's scaleups."
